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The young and first-time buyers are not being heard – Carruthers

by: Steve Carruthers, head of mortgage distribution, Newcastle Building Society
  • 11/07/2016
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The young and first-time buyers are not being heard – Carruthers
So we have a Brexit verdict but what of its consequences? One thing is for sure, as expected the younger generations did not en masse seek this verdict.

Lord Ashcroft polled 12,369 people after they had voted to help explain the result – who voted for which outcome, and what lay behind their decision.

This year to date as much as 25% of our mortgage business has been written supporting first-time buyers. We have spent a lot of time devising products and listening to their concerns. It’s clear they have not been the decisive voice demographically.

Ashcroft found that the older the voters, the more likely they were to have voted to leave the EU. Nearly three quarters (73%) of 18 to 24 year-olds voted to remain, falling to under two thirds (62%) among 35-44s. A majority of those aged over 45 voted to leave, rising to 60% of those aged 65 or over. Most people with children aged ten or under voted to remain; most of those with children aged 11 or older voted to leave. Among private renters and people with mortgages, a small majority (55% and 54%) voted to remain; those who owned their homes outright voted to leave by 55% to 45%.

The next two years, or the point from when we trigger Article 50, will doubtless impact the UK economy. But whatever the market sentiment, the UK will still have a chronic undersupply of appropriate property for age groups throughout the supply chain. The demand for help with housing will remain and could increase if financial services companies lose their nerve.

First-time buyers and their peers should not despair. Their need for housing supports the entire value chain. The nation’s sense of economic well-being is wrapped up in its housing wealth. No government of any persuasion will want weaker demand in housing compounding any other economic headwinds we are facing. We are a long way from a done deal and life goes on. First-time buyers should take heart that some of us, including us here at the Newcastle Building Society, are thinking about them.

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